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Today, Fossil Group announced that it has entered a $260 million "definitive agreement" to acquire Misfit, the company that created the popular and versatile line of Misfit fitness trackers. The announcement comes not long after Fossil released its own line of Q trackers, which monitor daily activity and deliver filtered smartphone notifications to your wrist.

Misfit also just announced a new tracker, the Shine 2, which is an updated version of its popular Shine device. The company was one of the first to embrace trackers versatile enough to be both stylish and functional. Misfit also has the Swarovski Shine collection, which is a collaboration with the luxury crystal maker.

Fossil Group owns Fossil, Skagen, Michele, and Zodiac and has numerous licensed brands including Kate Spade, Burberry, Michael Kors, Marc Jacobs, Tory Burch, and Adidas. According to the press release of the news, the company plans to use Misfit's technology in Fossil and Skagen products to create more connected devices. Exactly what kinds of connected devices is unclear, though we can probably expect to see some new wrist-bound wearables. Also, it's unclear how Fitbit's collaboration with Tory Burch will be affected, if at all, by this deal.

The acquisition makes sense for both parties. Fossil has dabbled with connected devices in the past, long before the release of the Q collection, and Misift has positioned itself as one of the more lifestyle-focused wearable device companies currently thriving. The two companies represent the best of both worlds as well. Fossil brings its legacy of vintage fashion to the table, and Misfit has the fitness tracker technology down well.

Now more than ever, companies are understanding the importance of having wearables that are not just functional and accurate but also stylish. Since these devices are meant to be worn, they inherently say something about the wearer, and it's clear that both Fossil and Misfit have understood this for a while and want to attract a wider customer base by combining efforts. According to the press release, Fossil Group CEO Kosta Kartsotis sees how much potential traditionally stylish devices can have when they are married with smart features.

"We have a significant opportunity to add technology and connectivity across our platform of watches and accessories,” Kartsotis said. “With the acquisition of Misfit, Fossil Group will be uniquely positioned to lead the convergence of style and technology and to become the fashion gateway to the high-growth wearable technology and connected device markets.”